PRESS RELEASES - 2005

Governor George E. Pataki today submitted 30-day amendments to his 2005-06 Executive Budget -- marking the submission of the Governor's complete Executive Budget to the Legislature nine days earlier than the constitutionally required deadline.

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"The Executive Budget I submitted in January is a responsible, fiscally prudent plan that offers an historic opportunity to overcome the State's fiscal challenges, place New York on solid financial footing, and secure a bright future for our State," Governor Pataki said. "I am pleased to submit our complete Executive Budget nine days earlier than required so that we can continue to work with the Legislature to enact an on-time Budget that meets the fiscal challenges we face."

The 30-day amendments make no significant changes to the Executive Budget the Governor submitted in January. The majority of the amendments are technical and mechanical changes being made to the original Executive Budget.

The amended Financial Plan reflects projections for slightly reduced spending in General Fund, State Funds and All Funds, and an increase in the 2004-05 revenue forecast totaling $350 million. When combined, the projected spending reductions and revenue growth increase the estimated current year 2004-05 surplus by $352 million - to a total of $522 million. In addition, the plan increases the 2005-06 revenue estimates by $200 million.

The Governor indicated that all of the additional surplus funds will be placed into a new "Fiscal Stability Fund" because the State's official rainy day fund is currently at its statutory limit. With this new deposit, total State reserves will exceed $1.4 billion.

Among the 30-day amendments are a newly proposed tax cut for small businesses that would reduce their top tax rate to help them create jobs and strengthen the State's economy. The proposed tax cut would lower the corporate franchise tax rate for small businesses -- those with less than $290,000 in net income - from 6.85 percent to 6.5 percent. This measure would save small businesses across the State $5 million annually.

In addition, highlights of the 30-day amendments include:

• $11 million to give counties an additional year to comply with the new work participation rate requirements and allow them to develop innovative new strategies under the Flexible Fund for Family Services;
• $14 million to the City of Albany to cover the increased cost of services and to offset the loss of property tax revenue from its tax-exempt property, an increase of $6 million from the Executive Budget;
• $3.1 million in public broadcasting aid to retain its funding at previous year's levels; and
• $2.5 million to assist the Red Cross in its disaster preparedness efforts, including ensuring the organization has an adequate blood supply to respond to natural or other disasters.

The 30-day amendments also propose a phased-in increase in New York City foster care payments to reflect the higher costs in New York City.

Among the Governor's 30-day amendments is a provision to allow the State's Division of Criminal Justice Services (DCJS) to post the names and personal information of all of the State's sex offenders on the Internet.

The 30-day amendments require that any Aid and Incentives to Municipalities (AIM) increase for a municipality operating under a Financial Control Board goes directly to the Financial Control Board before being passed on to the municipality.

The Governor's 30-day amendments also change the structure of the appropriation for the Office of Educational Accountability to reflect concerns raised by the Legislature.

With the 30-day amendments, General Fund spending would decrease by $5 million over the Governor's initial Executive Budget. The General Fund will total $45.1 billion, a $1.2 billion increase, or 2.6 percent, from 2004-05 levels.

State Funds and All Funds spending would decline by $31 million and $365 million respectively from the initial Executive Budget, and will total $69.1 billion and $105.2 billion respectively, representing increases of 5.5 percent in State Funds and 2.5 percent increase in All Funds from 2004-05 levels.

For a complete list of the 30-day amendments, please see the bill memos and other documents on the Budget Division's website at www.budget.state.ny.us. ###